Law:

Section:

Sections 43(3) of the Income-tax Act, 1961, read with West Bengal Cold Storage (Licensing and Regulation) Act, 1966, read with West Bengal Cold Storage (Licensing and Regulation) Rules, 1967 - Plant - Whether since in a cold storage building, storage or chamber itself is an apparatus and tools in trade through which business is carried on, in view of section 43(3), said chambers of cold storage building are to be treated as 'plant' - Held, yes - Whether, however, only that part of cold storage building which is used and utilized as chamber for storing goods in cold storage, would be treated as plant and not entire building - Held, yes FACTS The issue that came up for consideration in the instant reference was whether a building of a cold storage is a plant in order to be eligible for depreciation at the rate of 33.33 per cent. HELD From the analysis of 1966 Act and 1967 Rules, it appears that the storage or the chamber itself is an apparatus and tools in the trade through which the business is carried on. The building of the cold storage housing the chamber is neither a setting nor a canopy. It is the means or apparatus or the tools for the business. It is not only the insulation for which specification is provided for. On the other hand, the walls and roofs of the building are to be constructed or maintained in a particular manner, which is exclusively necessary for the purpose of the cold storage and then the roofs and walls are to be insulated. The insulation without the building cannot produce the result and the building without the insulation also is equally disastrous for the purpose. The building with the insulation is an integral part for forming the apparatus or means. A building constructed otherwise than specified would not be able to house the insulation or produce the desired result. A cold storage is to be constructed in a particular manner and then insulated. The building of the cold storage is exclusively used for a cold storage and cannot be put to any other use. It is the storage with which the business is carried on. The racks are to be placed in a manner as specifically provided in rule 11 for distribution and circulation of tem-perature and…

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